Divis Lab shares soar over 15% after strong Q2 results; pharma stock return nearly 500% in 10 years

The largecap pharma stock has returned more than 29 percent in absolute returns year-to-date and more than 63 percent in the last one year. Not just that, the stock has returned 484 percent in the last decade, according to marketsmojo.com.

Brokerage firm, Equirus Capital, has upgraded Divis Laboratories stock to "long" from "add," raising target price to Rs 1,485 from Rs 1,292 per share.

Axis Capital also rated the stock "buy," at a target price of Rs 1,440 from Rs 1,320 per share.

Hyderabad-based Divis Laboratories is in "a sweet spot" given strong chemistry skills and manufacturing excellence, Axis Capital said in a note.

Divis Laboratories was the top percentage gainers on Nifty Pharma where all 10 stocks gained on the sectoral index.

Apart from Divis Laboratories, Aurobindo Pharma gained 6.8 percent to trade at Rs 768.75 and Piramal Enterprise rising 5.41 percent.

Dr Reddy's shares jumped nearly 5 percent to trade at Rs 2,523.70 and Glenmark Pharma rose 1.12 percent to trade at Rs 600.10.

Meanwhile, benchmark indexes surged on sustained buying across sectors, particularly in financials and pharma. The Sensex traded at 33,905, higher by 1.67 percent. The Nifty also traded near 10,200 at 10,188, gaining 1.58 percent.